Difference between Affiliate Marketing and Referral marketing

[ronelgon]

Dear members, i would like to know the difference between Affiliate marketing and Referral marketing

Regards,
Ronnie

[OTCommerce]

Affiliate marketing is when you work with various partners to promote your product. Moreover, they may have referral links. Referral marketing is when not only your partners, but also your customers use your referral links and attract customers to you.

[ronelgon]

Thank you for sharing your thoughts on the difference between Affiliate and referral marketing. Keep it up

Regards,
Ronnie

[Krionn]

Oh.. marketing is something special

[susiparker]

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->Referral marketing is asking you, customers, to refer your brand to their friends and family and they shall get a reward for doing so.
While affiliate marketing is advocating third-party brands. It works between a brand and an affiliate who is paid to promote the brand.

[jacksons25]

susiparker , thanks for explaining.

[Taaffeite]

Originally Posted by ronelgon

Dear members, i would like to know the difference between Affiliate marketing and Referral marketing

Regards,
Ronnie

Referral marketing works along with word of mouth. Your existing customers love the products/services of yours, and they recommend it to their peers. You don’t pay any customers to promote your brand.
Affiliate marketing is more like referral marketing, but you don’t give out rewards for promotions. Instead, you pay the influencers in cash. You pay to the affiliate of your business to sell out your products to others. Affiliate marketing has a similar structure to referral marketing as they both use incentives to drive new customer revenue.

The key difference is that affiliate marketing focuses on third-party brand advocates to send customers to your business for a flat fee. Where referral marketing is focused on rewarding current customers to invite their friends to try your product/service.

[Kwatch007]

Originally Posted by OTCommerce

Affiliate marketing is when you work with various partners to promote your product. Moreover, they may have referral links. Referral marketing is when not only your partners, but also your customers use your referral links and attract customers to you.

You said it precisely!

[brandablecontent]

I always think of referral marketing as when you encourage/incentivize your customers to help promote your products or services to their friends and family. Affiliate marketing is when you partner with someone who recruits affiliate marketers to promote your products or services to their audience.

[SarbjitGrewal]

Originally Posted by ronelgon

Dear members, i would like to know the difference between Affiliate marketing and Referral marketing

Regards,
Ronnie

In affiliate marketing, the advocate does not know their referred customer personally, and the primary reason for referring your brand is financial motivation.

In contrast, a referral marketing advocate recommends your brand to a colleague, friend or family member.